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Turning ‘risky’ confidence into risk confidence

The collapse of the World Trade Center on September 11 prompted the largest ever, single operational risk loss. Here, Roland Avery and Daniel Butler of Aon discuss the new implications for operational risk management

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Many banks are working towards managing their operational risk to a confidence level of 99.9%. In other words to a level of confidence such that they expect, statistically, to suffer a catastrophic (ie, life threatening) ‘operational risk’ event once every 1,000 years. The capital implications of achieving this level of confidence are considerable. Let’s put things into practical

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Emerging trends in op risk

Karen Man, partner and member of the global financial institutions leadership team at Baker McKenzie, discusses emerging op risks in the wake of the Covid‑19 pandemic, a rise in cyber attacks, concerns around conduct and culture, and the complexities of…

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